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IT Ops Scenario

IT Infrastructure, Operation and Data Center

Summit

April 9-10, 2013

Sheraton Sao Paulo WTC Hotel

Sao Paulo, Brazil

Patricia Adams

This presentation, including any supporting materials, is owned by Gartner,Inc. and/or its affiliates and is for the sole use of the intended Gartneraudience or other authorized recipients. This presentation may containinformation that is confidential, proprietary or otherwise legally protected, and

it may not be further copied, distributed or publicly displayed without theexpress written permission of Gartner, Inc. or its affiliates. 2013 Gartner, Inc. and/or its affiliates. All rights reserved.

Notes accompany this presentation. Please select Notes Page view.These materials can be reproduced only with written approval from Gartner.Such approvals must be requested via e-mail: [email protected] is a registered trademark of Gartner, Inc. or its affiliates.


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This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole use ofhe intended Gartner audience or other authorized recipients. This presentation may contain information that is confidential,proprietary or otherwise legally protected, and it may not be further copied, distributed or publicly displayed without theexpress written permission of Gartner, Inc. or its affiliates. 2013 Gartner, Inc. and/or its affiliates. All rights reserved.

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Improving cooperation and alignment with business leaders has long been a goal of I&O organizations.

Often times organizations will invest in large, multi-year projects to make such improvements. Although

these large efforts do, in fact, result in improved relations between I&O and business leaders, many

organizations can't afford either the time or the costs of a long-term investment and essentially give up on

the goal. However in our view there is more than one path to improvement. I&O organizations can make

smaller, measured changes in their operations to move forward. In some cases this involves stopping taking

actions that have limited value or are ultimately counterproductive. In other cases it means looking at

current practices in a new light

essentially rethinking and reimaging traditional solutions. And, of

course, it typically involves the introduction of new practices and technologies into the mix. But in all cases

these changes can be made incrementally and over manageable periods of time.


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IT operations management is often an afterthought that follows the deployment of new or emerging

technology. However IT operations management can, in fact, lead the charge for the implementation of new

technology and influence successful business outcomes. This presentation will highlight key decision point

in IT operations management technology, processes, and organizational approaches.

What current-state IT operation management investments impair future change?

What investments in IT operations management best facilitate future change?

What immediate actions should IT take to prepare for the planning horizon?


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IT operations management is often an afterthought that follows the deployment of new or emerging

technology. However IT operations management can, in fact, lead the charge for the implementation of new

technology and influence successful business outcomes. This presentation will highlight key decision point

in IT operations management technology, processes, and organizational approaches.

What current-state IT operation management investments impair future change?

What investments in IT operations management best facilitate future change?

What immediate actions should IT take to prepare for the planning horizon?


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Key Issue: What current-state IT operation management investments impair future

change?

In the past, many companies have had a different strategies for selecting, deploying, and managing

infrastructure and operations. They may have had methodologies for classifying infrastructure, by

application, organization, geography or technological viability, but they did not recognize that different

aspects of infrastructure are fundamentally different based on how they are used by the organization.

Gartner has created three categories to distinguish these infrastructure and operations types and helporganizations develop more-appropriate strategies for each one. The same infrastructure may be classified

differently in one company than another based on its usage and relationship to that business model.

Differentiating infrastructure components by categories allows the I&O organization to avoid a

cumbersome and expensive "one size fits all" approach and instead determine appropriate levels of

investmentsand appropriate management controls for each layer.

Action Item: Map your infrastructure components into categories or layers so you can better determine

levels of investment and levels of control.


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change?

While IT spend be increasing year over year, Gartner continues to see that the I&O organization makes

poor choices in how there are spending their resources. Overall, there is a lack of balance in how

investments are made, and organizations are not looking to spend their money evenly across the three main

pillars of the I&O organization; people, process and technology. What Gartner regularly sees is

organizations trying to solve infrastructure issues through new technology. It is very common fororganizations to attempt to solve issues that exist within their people and processes by adding new

technologies. Vendors often lure companies to their offerings by providing solutions that may be certified

against popular best practice frameworks, However, a certified product does not replace the need to

investments across the I&O pillars.

Action Item: Don't buy a tool before first raising the maturity of the management practices, people

practices and processes for your organization.


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change?

Regardless of the function within infrastructure and operations (I&O), metrics inundate our days trying to

report and explain productivity in terms of numbers and measures that everyone can understand. But our

focus on providing metrics to prove how successful we are has left a void in the value message of what the

I&O is actually providing to the business. Although we believe the business should be impressed with how

effective the incident management process is and marvel at the Mean Time to Restore Service (MTRS),reality shows us that most of the metrics we report on are of no interest to the business users, and don't

really tell the story of what value the I&O is providing to the business. If we can take the time and push our

existing approach to metrics aside, and follow some simple steps in how we report on our activity, we can

begin to use metrics to show how the I&O is a true valued business partner.

Action Item: Begin to limit productivity metrics that are reported to the business leaders and ensure

appropriate metrics are used to drive the right behavior.


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Key Issue: What current-state IT operation management investments impair future change?

Gartner sees clients often making investments into SaaS solutions with the belief that cloud based technologies are

inherently better than other options and will, by default, solve any of their I&O woes. This ideal stems from the

though that SaaS is often market as a technology solution itself, rather than as a delivery model for existing

technologies. In fact, many vendors are offering their product via multiple delivery models, with little to no actual

functionality differences. Clients perception of SaaS, and often why it is believed to be a better option, is that SaaS is

less expensive overall. Organizations falsely believe that because SaaS costs less in the first years of the agreement

that it will always be less expensive than perpetually licensed software. Gartner client inquiries have not shown this tobe the case, as the internal costs for implementation, internal resources, integrations, and vendor management are the

similar for both licensing model. The other side of this issue is that often organizations make calculations based on

FTE's the assumed percentage of savings, and in reality the person never leaves the company and the bottom line

never gets adjusted. In short, not enough time is spent to understand what the differences are and what they truly cost.

Action Item: Use Gartner's Business Case Model for Total Cost of Ownership (TCO) Analysis of SaaS vs. Traditional

Application Software and Services to understand your 3, 5, and 10 year TCO.


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Key Issue: What current-state IT operation management investments impair future change?

Impacts

Immature infrastructure and operations (I&O) organizations purchasing software as a service (SaaS) IT service

support management (ITSSM) tools that don't reach maturity in the first contract term will miss time-to-value

opportunities.

I&O organizations that don't include the full scope of internal SaaS ITSSM tool costs won't achieve the expected ROI

I&O organizations that don't license SaaS tools strategically are less likely to renew first-term contacts, and will incurheavy switching costs.

Recommendations

Build strategic road maps to improve I&O maturity across all people, process, technology and business management

dimensions in conjunction with your tool acquisition.

Consider perpetual licensing if your organization can't utilize at least 50% of SaaS ITSSM modules in three years.

Use Gartner's business case model for total cost of ownership (TCO) analysis of SaaS versus traditional application

software and services.

Expect your license requirements across both licensing models to increase over the solution life cycle.


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Key Issue: What investments in IT operations management best facilitate future change?

Many IT professionals view methodologies, frameworks, and standards as competing approaches to

delivering IT value. This perspective often leads to broad disagreements along the lines of "ITIL versus

CMMI" or "ITIL versus DevOps" and so forth. In truth, rarely can a single I&O organization stay within the

boundaries of any one framework or methodologydifferent categories of infrastructure and different

groups within IT often require different approaches. Our advice is to treat frameworks, methodologies, and

standards as a set of cookbooks and to pull a set of recipes from these resources to build a approach

ameal if you will that uniquely fits the needs of your organization. In some cases you will need to be

more creative and innovate beyond existing guidance and best practices. Gartner's research on the topic of

"ValueOps" is one example of this approach; ValueOps suggests how you can combine and optimize

multiple methodologies to create a streamlined approach to some I&O challenges. In essence, you can draw

the unique value from the different choices and combine for the greatest impact.

Action Item: Identify the methodologies, frameworks, and standards that are applicable to your I&O

organization and look at how they may be combined and/or optimized.


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IT Operations Management (ITOM) tools are the foundation under which the Infrastructure and Operations

(I&O) operate. New technologies are continually being evolved and many long standing methods of dealing

with common I&O issues continue to be available. The I&O organization should continually question the

value of these technologies and their impact on the I&O operations. Because the tools and technologies are

such an integral part of how the I&O team operations, it is crucial that the appropriate technologies be

employed, and the ones that are no longer as impactful as they once were be retired. The ITOM MarketClock serves as a decision framework that helps IT leaders evaluate and prioritize their investments in IT

operations management tools. Every technology asset class is mapped in terms of commoditization and

progress through its own market life cycle. Both parameters help organizations make decisions for

deploying, sourcing and retiring key assets in their I&O asset portfolio.

Action Item: Make the IT Market Clock a component of your strategic planning efforts for the I&O

organization.


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The concepts of having standards within the I&O organization is certainly not a new idea. There are

numerous frameworks with which you can choose to aid in standardization, and a big part of maturing the

I&O organization falls into ensuring that appropriate standards exist against people, process and

technologies. But many people believe that cloud based technologies offers a license to throw the idea of

standardization out the window and customize beyond recognition. With the promise of flexible solutions,

often portrayed by SaaS vendors, Gartner clients look to take out of the box solutions and create a totallynew tool that requires a whole new set of skills and resources to maintain moving forward. In reality, SaaS

tools should follow standardization just as much as another other type of tool delivered via any other

model. Limiting customizations to the tool is just good sense and ensures ease of ongoing support and a

smooth transition from version to version.

Action Item: Limit customizations made to your SaaS tools.


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Business metrics must align to each side of the triangle to understand the balance of efficiency, productivity and

satisfaction. In determining which side to align business-oriented metrics to, the metrics should not be used twice to

eliminate hyper-focus. Metrics may overlap, but having providing a balanced viewpoint requires that organizations

interpret metrics appropriately as they align to business objectives. For example, a metric such as MTRS can show

how efficient a team is being, but it can also be an indicator of how productive the team is as well. Deciding how to

use the metric eliminates hyper-focus. This is also important because steering performance toward the wrong metric

can have un-intended consequences. For instance, should you choose to use FCR as your main measure and the ITservice desk staff knows that is how they are being measured, they may begin to spend too much time on one

particular issue. Although this may certainly address that one issue, it can cause the backlog to become unmanageable

impact the MTRS as well as the resolution time distribution, and more importantly, cause a dissatisfaction of other

customers who may be waiting in the queue for assistance with their issue. Additionally, look to update existing

dashboards with Business Value Dashboards and work to utilize metrics that tell a story about the value of service,

beyond just productivity and performance.

Action Item: Establish metrics triangles to ensure you are using small subsets of metrics that work in unison to tell the

story of performance for the I&O.


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As mobility, social interaction, information and the cloud converge, traditional IT service desks are becoming

unsustainable. Some CIOs and infrastructure and operations leaders are reshaping their traditional, reactive and

technology-oriented ITSDs into proactive business productivity teams. BPTs represent a departure from the traditiona

ITSD model. Whereas ITSD teams react to user issues, BPTs proactively promote productivity by enabling user self-

sufficiency, understanding business processes and challenges, and proactively leveraging existing IT capabilities to

improve business capabilities. By instilling BPTs with a broad understanding of business processes, they can quickly

identify solutions for common business user challenges, ideally before the user realizes there's problem. To do so,BPTs are radically different from current ITSDs: they have fundamental differences in purpose; operating model;

relationship to users, staffing and skills; and success criteria. Progress with traditional ITSDs has stagnated in many

I&O organizations. Emerging trends, including consumerization of IT, are likely to further erode the effectiveness of

traditional IT support models. As an alternative, some CIOs and I&O leaders are leaning on a proactive, collaborative

approach that Gartner describes as a BPT. Being aware of the key differences and obstacles can increase the success

rate for creating an effective alternative to the traditional ITSD support approach.

Action Item: Access the potential of the new IT business productivity team (BPT) support model for your organization


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As mobility, social interaction, information and the cloud converge, traditional IT service desks are becoming

unsustainable. Some CIOs and infrastructure and operations leaders are reshaping their traditional, reactive and

technology-oriented ITSDs into proactive business productivity teams. BPTs represent a departure from the traditiona

ITSD model. Whereas ITSD teams react to user issues, BPTs proactively promote productivity by enabling user self-

sufficiency, understanding business processes and challenges, and proactively leveraging existing IT capabilities to

improve business capabilities. By instilling BPTs with a broad understanding of business processes, they can quickly

identify solutions for common business user challenges, ideally before the user realizes there's problem. To do so,BPTs are radically different from current ITSDs: they have fundamental differences in purpose; operating model;

relationship to users, staffing and skills; and success criteria. Progress with traditional ITSDs has stagnated in many

I&O organizations. Emerging trends, including consumerization of IT, are likely to further erode the effectiveness of

traditional IT support models. As an alternative, some CIOs and I&O leaders are leaning on a proactive, collaborative

approach that Gartner describes as a BPT. Being aware of the key differences and obstacles can increase the success

rate for creating an effective alternative to the traditional ITSD support approach.

Action Item: Access the potential of the new IT business productivity team (BPT) support model for your organization


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Applications continue to become more loosely couple; this is further complicated by the transition to cloud delivery

models. With these changes traditional data center-centric application monitoring becomes less effective because

application components (or in some cases the entire application) are no longer contained within the walls of the data

center. This is even true at the network layeras more organizations embrace mobile devices and mobile

technology, traffic that used to flow exclusively through the data center can be routed over cellular networks that are

virtually invisible to the I&O team. As a result of these changes, there is only one place where we can actually gauge

the end-user experience: that is at the end-user device itself. By including the end-user experience, IT can get a betterview of what the end-user, and by extension the business experience, is actually like. Embracing end-user experience

monitoring allows IT to "see" applications and services being delivered outside the scope of internal IT. In most

organizations end users do not understand where applications are being hostedthey only perceive their experience

as it relates to application responsiveness. Therefore, when something goes wrong, end users are still quick to get on

the phone to the service desk regardless of the origin of the application. End-user experience monitoring allows IT to

obtain a better view of all application and service behaviorboth internal and externaland often see a problem

before a user picks up the phone to dial the service desk.

Action Item: Reallocate application performance monitoring investments to include end-user monitoring technology.


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Applications continue to become more loosely couple; this is further complicated by the transition to cloud delivery

models. With these changes traditional data center-centric application monitoring becomes less effective because

application components (or in some cases the entire application) are no longer contained within the walls of the data

center. This is even true at the network layeras more organizations embrace mobile devices and mobile

technology, traffic that used to flow exclusively through the data center can be routed over cellular networks that are

virtually invisible to the I&O team. As a result of these changes, there is only one place where we can actually gauge

the end-user experience: that is at the end-user device itself. By including the end-user experience, IT can get a betterview of what the end-user, and by extension the business experience, is actually like. Embracing end-user experience

monitoring allows IT to "see" applications and services being delivered outside the scope of internal IT. In most

organizations end users do not understand where applications are being hostedthey only perceive their experience

as it relates to application responsiveness. Therefore, when something goes wrong, end users are still quick to get on

the phone to the service desk regardless of the origin of the application. End-user experience monitoring allows IT to

obtain a better view of all application and service behaviorboth internal and externaland often see a problem

before a user picks up the phone to dial the service desk.

Action Item: Reallocate application performance monitoring investments to include end-user monitoring technology.


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Despite past successes and busy teams, NOC leaders should push their organizations to think in terms of value not

activity, proactive capabilities not reactive approaches, and business impact not technology environments. Given the

business and technology changes and alternative approaches revisit the value proposition with your current NOC's

role. Additionally, review the current level of expense associated with the NOC against the value received. Plan what

could be done to transition your NOC into a modern Operations Center will aid the NOC team and all of I&O in

reaching higher levels of organizational maturity and contribute toward the elusive status as a trusted partner to the

overall business. The traditional reactive work in a NOC of watching and waiting for alerts to flash and then notifyingother parties is no longer the sufficient value add that it once represented. It is perhaps even something that should be

discontinued. Focus on moving activities which can be automated in that direction, create an updated business case,

transform the current NOC role into a more proactive robust function, and align your team skills to the expanded role.

Evolution activities revolve around people, process and technology:

-- People: Identify a leader, structure staffing requirements and potential new roles

-- Process: Identify current management process and desired future state

-- Technology: Inventory current tools, identify gaps in technology and create an integration strategy

Action Item: Eliminate or expand the NOC role, when business or technology drivers invalidate the NOC's supporting

business case. Create a road map to support role changes and revitalize a reactive, limited function traditional NOC.


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IT needs to stop viewing itself as a sole supplier of services and must instead become a broker of services.

For many I&O organizations, the model consists of creating and providing the services that the I&O

organizations believes are of the most value to the end users of the business. But without end user input,

how can the I&O team know what services are of the most value. Beyond that, the I&O organization must

recognize that they are not the only provider of services to the business. They are numerous other options

available, including SaaS-based services, managed services, etc. Because of the choice of services

available, the I&O team must look to become more of a broker of those services, managing the contracts

and SLA's, monitoring the services and working to ensure quality in the delivery of those services to the

end user. Ultimately the I&O team should be seen as an enabler of productivity, independent of where the

services themselves are sourced. Just making sure the end user has the ability to choose the most

appropriate service from the most appropriate supplier can show how the I&O team understands the needs

of the business.

Action Item: Evaluate how your I&O organization can become a broker of services by enhancing the

portfolio of services to include services provided by outside suppliers.


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IT needs to stop viewing itself as a sole supplier of services and must instead become a broker of services.

For many I&O organizations, the model consists of creating and providing the services that the I&O

organizations believes are of the most value to the end users of the business. But without end user input,

how can the I&O team know what services are of the most value. Beyond that, the I&O organization must

recognize that they are not the only provider of services to the business. They are numerous other options

available, including SaaS-based services, managed services, etc. Because of the choice of services

available, the I&O team must look to become more of a broker of those services, managing the contracts

and SLA's, monitoring the services and working to ensure quality in the delivery of those services to the

end user. Ultimately the I&O team should be seen as an enabler of productivity, independent of where the

services themselves are sourced. Just making sure the end user has the ability to choose the most

appropriate service from the most appropriate supplier can show how the I&O team understands the needs

of the business.

Action Item: Evaluate how your I&O organization can become a broker of services by enhancing the

portfolio of services to include services provided by outside suppliers.


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Key Issue: What are the best practices for driving continuous improvement in IT

operations?

Strategic Imperative: IT infrastructure and operations business management processes

mature by becoming more formal, rigorous, integrated and service-centric.

Key Issue: What immediate actions should IT take to prepare for the planning horizon?

Gartner recommends that in order to improve the I&O organizations it is essential that you fully

comprehend where you are today in terms of organizational maturity. While there are many options to

choose from to measure maturity, Gartner's IT Score for I&O (ITSIO) provides an interactive assessment

that aligns closely with related research. ITSIO helps I&O leaders evaluate their maturity with respect to

people, process, technology and business management, and establish a road map for increasing levels of

maturity to service alignment and partner with the business. Beyond the initial assessment it is essential thayou also create a plan for improving maturity over time, using the same tool to continually assess where

you are with relation to achieving specified goals. It is also crucial to determine how far on a maturity scale

you are willing to go as each progressing level contains more and more costs. It is essential to understand

the costs vs. returns with progressing maturity.

Action Item: Use Gartner ITScore to assess the current maturity of your I&O and review research to help

move up the maturity stack.


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Bringing together a group of stakeholders from the different aspects of the business can provide a well-rounded

perspective of how the I&O team is performing, and where the business sees potential areas for value proposition. The

business governance team for the I&O organization will be a group of people who decide what processes the I&O

group should be performing for the business based on the business needs of the organization. An integrated and

unified governance framework for the I&O group, effectively covering all service assets and processes, is a key

indicator of maturity. There is no standard list of members for the governance team. Rather, the team would be made

up of representatives from the constituencies of the I&O organization. In short, the stakeholders for the business willbe the representatives, which include business unit leaders, as well as relevant I&O management stakeholders.

Additionally, the team does not have to be static. There is intrinsic value in having different representatives attend

different meetings. For the representatives from the business, perhaps an individual may serve on the team for one

business quarter, after which someone else takes over. This ensures fresh and different perspectives. With regard to

frequency of meetings, there is no standard schedule to which one should adhere. Depending on how much guidance

is needed, team meetings may start more frequently in the beginning of the process, and taper off to once a quarter, if

that is sufficient.

Action Item: Form the business governance team for the I&O organization using stakeholders from different aspects

of the business who utilize the I&O groups services, as well as leadership from the I&O organization.


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IT organizations seek to buy IT operations management (ITOM) tools in mini-suites in order to solve specific problems and

reduce integration challenges and licensing costs, while vendors' ITOM frameworks of mini-suites continue to evolve. Rather

than buy the vendor's complete suite offering or framework of ITOM tools, IT organizations often look to vendor mini-suites.

Mini-suites are composed of a small number of tools that address either a defined need (e.g., end-user management, server

provisioning and configuration) or specific IT operations processes (e.g., incident and problem management), or that are aimed a

a specific user or buying center (e.g., network administration). Mini-suites can also reflect how vendors group, integrate, market

and sell their products. IT organizations often expect mini-suites to be based on a consistent architectural foundation with

integration between ITOM tools, allowing them (at a minimum) to share data. However, because continuing mergers and

acquisitions have affected ITOM vendors' portfolios, it cannot be assumed that integration exists between all of their products, or

that their products are based on a common architecture; degree of integration will vary by product. IT organizations can still face

significant challenges integrating minisuites together, although the integration challenge is minimized as compared with

integrating a wide array of best-of-breed point products from a larger number of different vendors. Vendors will continue to try

to differentiate themselves from their competitors by more tightly integrating their own portfolios.

Action Item: When looking at mini-suites to support the I&O architecture, be sure to implement pilot programs to thoroughly

ensure compatibility and integration across the tools.


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